Oil on track to close its second consecutive week of losses

September 11, 2020 12:30

Oil on track to close its second consecutive week of losses

Oil is heading to close its second consecutive week with losses, for the first time since April, when its price plummeted as a result of the confinements decreed by governments to curb the coronavirus pandemic.

WTI futures contracts that expire in October accumulated a weekly decline of close to 6% at mid-morning on Friday to around $37. Last week, it closed down 7.45%. Brent futures contracts, the benchmark in Europe, which expire in November, are also about to close with a weekly loss of 6%, which joins the 5.31% of last week, on the verge of losing $40.

Doubts about the recovery in demand continue, especially after the US Energy Information Agency (EIA) reported an increase in stocks yesterday for the first time in the last six weeks, with 2 million barrels more, after a decrease was expected. Now, all eyes are on the Organization of the Petroleum Exporting Countries (OPEC), who are scheduled to meet telematically next week.

WTI Futures CFD Daily Chart

Source: Admiral Markets MetaTrader 5. WTI Futures CFD Daily Chart. Date range: December 2019, to September 11, 2020. Prepared on September 11, 2020, at 11 a.m. Keep in mind that past returns do not guarantee future returns.

 Brent Futures CFD Daily Chart

Source: Admiral Markets MetaTrader 5. Brent Futures CFD Daily Chart. Date range: December 2019, to September 11, 2020. Prepared on September 11, 2020, at 11 a.m. Keep in mind that past returns do not guarantee future returns.

In the last four years, oil has achieved a certain price recovery, but lately has not been able to reach nor come close to the record prices prior to 2014, when it was between $90 and $100.

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